Principle Write Downs

Don’t expect banks to be forced to reduce principle balances because it would create a moral hazard.  But there is another article below backing up what I have said.  I know this makes a lot of people unhappy.  Since this is unlikely to happen they need to make the short sale process a lot smoother because I feel that is the better route. 

A short sale done quickly and correctly will reduce the banks expenses on taxes, association dues, etc.   I think what a lot of people forget is that a lot of these properties go uninsured along with vandalism and stealing of appliances, etc.  To me it is a no brainer but then again, who am I?

http://online.wsj.com/article/SB20001424052748704081704574652660161217386.html#mod=todays_us_money_and_investing